Credit cards and kids

For just about anything you want to get off your chest about credit cards.
4 posts
JBaker
 
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Credit cards and kids

Postby JBaker » Mon Apr 20, 2015 11:51 pm

Hello everyone, how many of you give credit cars to your kids? I have heard varied views about this, some supporting and others disagreeing. My kids aren't old enough to handle credit cards, but I would like to know what the parents of teens are actually doing. I think there are both pros and cons in giving credit cards to kids.

So please share in your views about this.


Brad Bishop
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Postby Brad Bishop » Tue Apr 21, 2015 9:16 am

I wouldn't give a credit card to my kid. I have, however, given them cash cards that could be reloaded so I'd give them the option of me paying them straight or just putting the money on their cash card. This allows them to order things from Amazon without having to ask someone to do it for them.

whit
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Postby whit » Tue Apr 21, 2015 9:50 am

loaded question.

My mom gave me a credit card as au at 16 with a generous limit (3k) and told me its for emergencies only. I started driving on learners permit recently and she worries, plus you never know.

But she's also had me on an allowance since I transitioned from private to public school.

Quite generous for my age than, $100 a week to spend on food and misc

When I insisted on working at 16, she would make me put my paychecks into a bank account and not touch it.

I rarely used the credit card except once when I was mad, I decided to buy a simple black bag at guess for like, 40-50? I felt so guilty about it after I watched the mail like a hawk and swiped it when it came and paid for it via money order (she only opened the card for me and didn't use it so it's easier for her to keep track of any expenses on there).

I've learned to keep track of my money through her, and the importance of credit--but funny how I never had to learn not to overdraft or balance checkbook from her..maybe it's just indirectly from watching her handle her bills and through trial and errors.

Which is why I'm so loyal to Citi even if they don't have the best rewards. My colleague says she hates them (her fiancé works for citigold) because she missed one payment one time by one date and they not only refused to do a courtesy waive but they also jacked up the apr..never happened to me *knockonwood*

I think setting up your child with a credit card and bank account; teaching them the importance of finance--is great but should be done 14-18, teenage years. So when they're kids..good ol' allowance and doing chores around the house works to get them into the right mentality.

thom02099
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Postby thom02099 » Tue Apr 21, 2015 10:33 am

JBaker wrote:Hello everyone, how many of you give credit cars to your kids? I have heard varied views about this, some supporting and others disagreeing. [color="red"]My kids aren't old enough to handle credit cards[/color], but I would like to know what the parents of teens are actually doing. I think there are both pros and cons in giving credit cards to kids.

So please share in your views about this.


Guess it depends on the age of the kiddos and their maturity level. Some kids are much more responsible at a young age, versus older kids who still need to learn responsibility.

If they are, say, mid- to late-teens, and you're looking to instill credit values with them, you could always add them as authorized users on your card(s), but not actually give them the physical cards until you feel they are ready for them. This also involves parental discussions on credit, using it wisely, educating kiddos as to the pros and cons of using credit cards, etc. When you feel they are ready, then you could give them the physical cards. This also helps them to establish a credit history on their own, as your credit history will have an impact on their beginning credit file.

Interesting dynamic of giving kiddos that first opportunity at using credit cards. I put both my kids on a few of my credit cards as AU, neither of them ever abused that. When they did use the cards, they told me about it, or if they had an upcoming expense that I knew about, I would suggest they put it on the card and then pay me back. My daughter (the younger of the two) has her own accounts now and manages credit just fine. My son, on the other hand, wants nothing to do with credit cards, but still manages his money quite well. His decision, though I keep pointing out the benefits to having a stronger credit file.
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